1. Cost Pressures and Economic Considerations
The top driver of assignment volumes in 2025? Cash. According to WHR’s 2024 Benchmark Study, 68% of relocation programmes are focusing on reducing expenses as rising costs and economic uncertainty put businesses under pressure.
Housing costs are a standout challenge. Accommodation in host countries like the Netherlands or U.K. has become prohibitively expensive, driven by housing shortages and surging demand. Skyrocketing rents are forcing companies to reconsider the financial feasibility of traditional relocation destinations.
Economic instability adds another layer of hesitation. Assignments that once seemed integral are now being postponed or cancelled—not for lack of need, but because the costs outweigh the benefits.
To adapt, many businesses now demand detailed cost estimates before proceeding and monitor relocation budgets more closely. Others are opting for shorter assignments, extended business travel, remote work models, or shifting focus to budget-friendly regions.
The Gulf Peninsula and Eastern Europe in particular have emerged as hubs for investment. Countries in these regions offer lower housing expenses, reduced operational costs, and growing pools of skilled talent, making them increasingly attractive alternatives for global mobility.
2. Assignment fatigue
Once seen as an exciting opportunity, overseas assignments are losing their appeal. While younger, single, ambitious employees remain keen, those with families are hesitating. The reality of uprooting a partner’s career, finding new schools for the kids, adjusting to a different culture, and then repeating the process on return is enough to make many say no.
Personal finances are also an influencing factor. Taxation is a major hurdle, with many assignees being liable for tax in their home and host countries. In the US, for example, employees are now taxed on previously non-taxable host-country benefits (although this could change in 2025 under the new administration).
Pensions add to the headache – some employers stop home-country contributions during assignments, forcing assignees to dig into their own pockets. These contributions – in home currency – often don’t align with the cost-of-living adjustments in host countries, leaving employees in the red.
Not surprisingly, remote and hybrid roles are gaining traction. For many, they offer a way to manage global roles without the personal and financial burdens of traditional assignments.
3. Remote and Hybrid Work Models
From workcations to permanent roles based in one country for an employer in another, remote work models are becoming increasingly prevalent. WHR’s 2024 Benchmark Study points to this trend’s rise, with 55% of respondents noting it as a growing focus.
The appeal is clear — employees question the need for traditional assignments if they can do the job from anywhere. Yet, this shift presents challenges for global mobility and HR teams, with equity among different employee groups cited as a major concern. Only certain roles, such as those in IT, are readily adaptable to remote formats.
Compliance is another hurdle. Tax and social security regulations across home and host countries must be carefully evaluated before implementing these models.
Thankfully, organisations are taking a proactive approach—67% of those supporting remote work now have formal policies in place, according to KPMG’s 2024 mobility benchmarking survey. These structures not only streamline remote options but also ensure adherence to tax and immigration laws, making it easier to manage the complexities of a mobile workforce.
4. Global Compliance Challenges
To minimise risk and free up internal resources, most organisations outsource key services like immigration, tax, and social security management to specialised providers.
This trend is only set to increase, according to the 2024 AON International People Mobility Survey. Ever-changing country-specific regulations for travel and work, limited in-house expertise, ambitious mobility plans to tackle talent shortages, and shifting tax regimes all add layers of difficulty to managing compliance and call for outside expertise.
Businesses are also turning to technology to manage compliance issues. KPMG’s 2024 Global Mobility Benchmarking Survey shows that 29% of organisations are planning to invest in systems for compliance risk assessment. These tools play a critical role by monitoring how long employees remain in specific countries—key data that influences immigration, tax, and payroll compliance.
5. Focus on Employee Experience (talent retention)
Improving the employee experience remains key to retaining and attracting top talent. KPMG’s survey shows that 70% of respondents ranked this among their top three priorities for 2024, and for good reason—replacing a departing employee can cost up to five times their annual salary, renumeration level depending (source: 2024 International SOS Ipsos Return on Investment Study)
This focus has prompted a shift in global mobility toward more flexible policies and allowances, with tailored relocation packages, like the core-flex policy, gaining popularity.
These policies maintain some non-negotiable elements, such as immigration services, but allow customisation based on an assignee’s circumstances and family size. For example, if a parent is reluctant to relocate with their children, the employer might offer extra return flights home instead of other benefits to encourage acceptance.
This flexibility has extended to working arrangements as well. Many companies now offer remote working options, or personalised setups, such as granting an additional day off each week in exchange for longer hours on other days. While these approaches require trust and thoughtful management, they offer immense value and should not be underestimated.
Employees show appreciation for such efforts through positive reviews on platforms like Glassdoor. These reviews not only strengthen the company’s reputation but also help attract talent that might have otherwise overlooked the organisation. By offering flexibility, employers can bridge gaps where salary expectations may differ, positioning themselves as attractive workplaces.
6. The rise of the managed lump sum and stronger clawback clauses
Initially viewed as the ideal way to cut costs, reduce administration and provide employees with flexible relocation options, the lump sum package has shown it is not all it’s cracked up to be.
Without expert guidance, employees tried to save money by skipping services they actually needed or choosing cheaper, less reliable providers, all with disastrous consequences. When their assignments inevitably failed, employers had to bear the cost of returning employees to their home country. The result? Companies spent heavily on relocation without seeing the expected return on investment (ROI).
To address these shortcomings, many organisations are adopting the managed lump sum. While employees still receive a lump sum, they must work with a relocation services provider who assesses their needs and guides them to select necessary and appropriate services. This approach ensures funds are used effectively and helps prevent common relocation pitfalls, benefitting both employees and employers.
For tighter budget scenarios, such as graduate hires or entry-level assignees, the traditional lump sum model still exists but with stricter clawback provisions.
If an employee resigns shortly after relocation, they may now be required to repay up to 100% of the relocation benefit. Alternatively, employers may enforce full repayment of certain high-cost expenses, such as immigration.
7. Technological Advancements and Automation
According to KPMG’s 2024 Global Mobility Benchmarking Survey, 76% of organisations use technology to streamline processes. This number is only set to increase in the new year, as 57% of respondents are planning to invest in technology in the next 12-18 months.
Technology is particularly valuable for automating time-consuming tasks like cost projections and compensation management. Not only does it improve efficiency, it also reduces the size of teams needed to manage global mobility programmes.
As tempting as this sounds in this era of budget cuts, the challenge lies in striking the right balance between automation and personal support. Technology should enhance, not replace, the human touch that many employees value during assignments.
Best practice suggests combining digital convenience with responsive, high-touch service. Employees should be able to manage tasks seamlessly via technology while knowing that support is readily available when needed.
Ideally, companies should tailor this approach to individual preferences. Younger employees are at ease with, and may even prefer, a tech-driven, self-serve model, while senior professionals may favour more hands-on assistance.
Adapting to these varied needs fosters a positive employee experience, again underscoring the importance of flexibility and personalisation in global mobility strategies.
8. Data-Driven Decision Making
Global mobility teams have access to more data than ever before and are increasingly leveraging data analytics to refine strategies, reduce costs, and enhance the employee experience.
Mobility policies can now be adjusted by sector, assignee profile, or even specific assignments. Factors like average employee age, family size, and position within the company guide decisions on optimal relocation packages, ensuring they are neither excessive nor insufficient.
Analytics also help flag potential problems with service delivery, enabling quicker resolutions.
Beyond relocation, data aids in identifying the ideal candidates for open roles, pinpointing where to source talent, and monitoring assignees for compliance purposes.
Sharing analytical insights widely within an organisation can also help mobility teams demonstrate their value. Metrics on cost management, compliance, and process efficiency or stakeholder reporting elevate the visibility of mobility functions and strengthen their alignment with overall business goals, as highlighted in KPMG’s 2024 global mobility benchmarking survey.
9. Environmental, Social, and Governance (ESG)
Environmental, Social, and Governance (ESG) policies are now central to many organisations, with 65% actively implementing them, according to the 2024 Aon International People Mobility Report.
Regulatory frameworks, such as the EU’s Corporate Sustainability Reporting Directive, will further amplify the focus on ESG by mandating reports on environmental and social impacts.
Within global mobility, companies are balancing ESG goals with economic pressures by adopting cost-efficient solutions like “discard and donate” policies and reducing their heavy reliance on shipping, a well-known source of carbon emissions.
Depending on assignment duration, could renting furniture offer greater savings, making it a more cost-effective and eco-friendlier alternative for global mobility teams?
Have these trends got you thinking?
This is just the beginning. As the year unfolds, we’ll be diving deeper into these industry developments to help you figure out which ones deserve your focus as you plan for 2026.
Already started but have questions about best practices or next steps? Reach out today! We’re here to help you manage—or maximise—the impact of these trends on your global mobility programme, no strings attached.